3 British AI Stocks With P B Under 1

AI is creeping into everyday British workplaces, from drafting emails to summarising documents, and many tools quietly rely on listed UK companies powering the chips, software and cloud behind them. That growing dependence on artificial intelligence is drawing fresh attention to London equities that look cheap compared with their role in this shift. This article highlights three UK AI related stocks from our undervalued screener that may be worth a closer look.

The three UK stocks that follow are only a sample from this AI focused screen, and the full results include 2 more companies with equally compelling stories that are not covered in the list below. To see everything in one place, head into the Undervalued Artificial Intelligence/ AI Stocks screener to identify, analyze, and rank your own highest conviction AI ideas.

Shearwater Group (AIM:SWG)

Shearwater Group is a small London based cybersecurity group that plugs directly into the AI theme through Mind Security, its artificial intelligence driven managed security service. The wider group still leans on more traditional solutions.

Shearwater Group generates about £33.1 million from Services and £1.8 million from Software, giving investors a mainly services led cybersecurity story with a smaller software layer. This is all wrapped in a micro cap valued at roughly £14.2 million.

For investors watching how AI is reshaping digital defences rather than just content creation, Shearwater Group offers a pure security angle where machine driven detection, response and monitoring are already part of the product set, not just a buzzword in presentations.

"Rising cybercrime, wider use of AI by attackers and tighter data regulation are prompting corporates and government departments to allocate more budget to cybersecurity."

What that expanding budget eventually does to pricing power and contract mix, depending on how one unseen pressure plays out, is the real swing factor.

That swing factor is exactly what the full narrative for Shearwater Group unpacks, spotlighting how AI driven security contracts could be accelerating faster than the headline mix suggests.

Bytes Technology Group (LSE:BYIT)

Bytes Technology Group plugs into the AI theme as a major reseller and consultant that helps organisations roll out AI enabled software, cloud platforms and cybersecurity for those workloads, giving you exposure to the infrastructure behind large language models rather than the headline apps.

Bytes Technology Group runs an IT solutions business generating about £220.6 million of revenue, mainly from software, devices and related services, and has a market value of roughly £1.0b.

"The expansion of their cloud base in public and corporate sectors and strategic focus on AI-powered software products suggests potential for significant revenue growth as demand for these technologies increases."

What that shift in mix ultimately does to Bytes Technology Group’s margins and earnings power depends on how one key vendor relationship evolves.

That vendor risk is exactly where the full narrative for Bytes Technology Group digs in, showing how Bytes Technology Group’s reseller role could be masking both upside optionality and real dependency.

Satsuma Technology (LSE:SATS)

Satsuma Technology is a London based AI software developer focused on building and running AI agents and subnet infrastructure that host and scale large language model tools. It currently reports about £0.1 million from holding and managing digital assets and related treasury activities, and the market values the group at roughly £23.4 million.

Satsuma Technology ties directly into the ChatGPT theme through its AI agent and subnet infrastructure work. Today it still earns only about £0.1 million from treasury style activities and reported a loss of £76.9 million in the latest year. Anyone interested in early stage AI infrastructure may still watch how one unresolved funding constraint shapes what this platform can become.

That funding question is exactly where the analysis report for Satsuma Technology helps you weigh how Satsuma Technology’s AI vision compares with its current balance sheet constraint.

Seeking Alternatives Before The Crowd?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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